Baseball Stadium Developers Soon To Be Awarded Half Of Downtown Reno
I am just going to post the entire RGJ.com article here so that we can all discuss it:
Developers took a decisive step toward building a $55 million minor league baseball stadium in downtown Reno on Friday when a citizens advisory committee unanimously backed the ambitious deal.
SK Baseball’s plan calls for a 6,500-seat stadium in a 6½-block baseball district, rebuilding a large part of downtown east of Virginia Street. Included would be a new shopping plaza, the completion of the National Bowling Center and a redeveloped Citicenter bus station.
The proposed deal with SK Baseball and its Nevada Land partner is scheduled to be considered by the Reno City Council on Wednesday.
If it succeeds in revitalizing the area, the developers would be given up to $2 million a year of new property taxes that would otherwise go to the Reno Redevelopment Agency. That would help recover the costs of building the stadium.
“It’s very fortunate for us these guys are very experienced developers and they are coming with a lot of their own money,” said Mark Lewis, redevelopment administrator, adding that cities usually pay upfront money for downtown baseball stadiums.
“They must have an awful lot of confidence in their project,” said Dick Scott, chairman of the redevelopment agency citizen’s advisory committee.
“They’re putting their money where their mouth is — a great incentive to continue on,” said Scott, who works for the Eldorado resort.
Herbert Simon, the man behind SK Baseball, is the largest mall developer in the country and recently purchased Meadowood Mall in Reno. Nevada Land is controlled by Jerry and Stuart Katzoff, who own the Il Mulino restaurant chain, which is big on the East Coast.
Lewis said the construction project could maintain a downtown momentum threatened by a slowdown in condominium projects.
Details emerging
The Triple A stadium is expected to open for play in the spring of 2009. The facility, including room for 10,000 people with lawn seating and sky boxes, also could be used for concerts, special events and other sporting activities.
Another site at the Grand Sierra Resort is now the back-up site, Lewis said.
All legal agreements for the stadium project must be in place by Oct. 1 for the developers to gain access to a countywide car-rental tax that could generate an estimated $27 million.
The property tax break of up to $2 million a year would be over 20 years. Given little tax money is expected from new development in the first five to eight years, the developers would most likely get about $16 million, Lewis said. The stadium itself would generate $575,000 a year in property taxes.
The deal would also give developers city land at Evans and Second streets, including the Freight House, the downtown Reno Fire Station and a third piece of property. The agency has a tentative agreement to take over a 94,000-square-foot parcel owned by Siena Communities in exchange for other city land, Lewis said.
The developers would also get the Citicenter bus station if the city buys it from the Regional Transportation Commission. Funds for the purchase are in the redevelopment agency’s budget this year. RTC is planning a new bus station near the stadium site.
Developers also would get a low-cost, 20-year lease for the first floor of the National Bowling Stadium and would agree to finish the south end of the building, which has been left half-built for a decade. It also would take over a small agency-owned parcel at 427 Evans St.
A closer look
Evans Street would be abandoned for a plaza connecting a new shopping area to the vacant block to the west, where the Mizpah Hotel burned down last October. Lewis said the developers are trying to buy the block.
A condominium project at the former Bundox property, now in redesign, also would also be part of the district as well as the stadium and the Citicenter half-block. The condo project would cover two small blocks at Lake and First streets.
The developers would agree to build the stadium and lease it for 20 years. After that, the developers would own it.
The developers also would loan the city $10 million to build a new fire station. Lewis said the city would pay for the relocation costs of the fire station and other city operations, while the agency would be responsible for repaying the loan.
Lewis said the worst-case scenario for the deal would be if the baseball team did not draw enough fans and the stadium had to close. In Tucson, where the city is losing its Sidewinders franchise to Reno, that process has taken 20 years, Lewis said.
My reaction later–there is a lot to take in including the tax deal, the land deals, the building deals….wow. The deal goes down Wednesday. I wish one of the plazas was finished and I would have more faith in this being worth it. Keep in mind the team is coming here from Tucson because they failed there. Anyway, discuss.
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Granted, there still are some details that need to be brought to light, but the thing that struck me most was the “They’re putting their money where their mouth is” quote.
Let’s see, the developers will get a $16-20 million tax break over two decades, access to the $27 million dollar car rental tax (all of it, some of it?), numerous pieces of downtown property for, apparently, free, and will make money on a $10.0 million loan to move the fire station which will be paid back by taxpayers. That’s a hell of a lot more than the $55 million to build the stadium.
It seems to me the taxpayer is putting up the vast majority, if not all, of the money for the stadium.
its taken for granted that stadium deals run this way or no stadium. As long as we have plans with what to do with it if the team leaves for a new city, at least that’s something.
It’s a biggie. Let’s hope it works.
If the Bowling Stadium is any indication of the viability of Reno stadiums being used often, we are in deep trouble.
My favorite part of publicly funded stadium talks is the alleged “economic benefit” they bring. Under their math, every hot dog, ticket and beer sold is completely new and found money for the community. Nobody ever seems to mention that it is mostly a reallocation of current entertainment dollars, “Do you want to go to the movies or the game tonight, kids?”
The fact that the Sidewinders are PCL champs and yet are leaving Tucson, the Silver Sox haven’t been burning it up attendance wise (yes, they are GBL, but how many Randy Choate [the only Sidewinder name I recognized] fans are there out here in Reno) and the history of pro ball in Reno doesn’t add up to success.
Maybe someone should have invited Stanford’s Roger Noll to the meeting.
Anon Guy - I think there are a number of reasons why the ballpark could do well in downtown Reno that have to do with the reasons the old Silver Sox folded and the reason the ‘Winders are leaving Tucson and why the current Silver Sox ‘aren’t exactly burning it up’. Same reason: location and ballparks suck. If you search for Tucson Electric Park you’ll likely find a great editorial in the Tucson paper about the crappy spot they put their ballpark.
I think this can work in Reno specifically because downtown Reno continues to try to draw visitors, and visitors are already there with nothing else to do. A ballpark means ball games during the spring, summer, and fall, and that’s just another “something to do” for the visitors guides. Something you don’t even have to get in a vehicle for.
I’m not saying Minor League Baseball is a tourist draw in itself, but Reno’s trying to be. Having baseball games a few blocks from most of the hotels can only be a good thing.
Does anyone else think they are building a mall under the guise of a baseball stadium?
Nothing against malls, nothing against baseball stadiums, but where’s the baseball ROI? Unless they get Barry Bonds chasing some sort of minor league record, attendance will probably wax and wane. $55 million is a lot of Cracker Jacks.
That said, it looks like a great opportunity to really kickstart the next phase of downtown redevelopment … and pedestrian-friendly, too.
Yeah, I think it will spur more development over the next few years, and as I said, as long as the city has good uses for the stadium if the team doesn’t work out long term, its probably okay.
As a Reno native I still scratch my head in bewilderment at how negative my fellow Renoites are about this and every project that comes to Reno. In 40 years, I have yet to see ANY project embraced by its citizens. We have a developer that wants to build a stadium and other development (which will cost them many tens of millions of dollars and we are complaining that the city is giving them some land and Tax increment.
I for one am excited that someone else is as confident with my town as I am. These developers are the best thing that has ever happened to Reno - five or ten years from now when our downtown is something to be proud of… I am sure each of you will be writing that you supported it all along. Just like you supported the train trench and the downtown theatres.
There are plenty of sport teams with nice stadiums that have crappy attendance (i.e., my Reds). The point is, if it is such a terrific slam dunk, then why shouldn’t the developer be willing to fund it himself, especially since they will be a shopping center on the side. Why is it always the taxpayer that takes on the risk? Virtually every study done on stadium deals shows it is the public that gets shafted, not the developers.
And for the comment that the city is just giving them “some land and Tax increment” while they are spending $10s of millions of dollars, did you actually read the story?
It’s $16-20 million in tax abatements, $27 million in car rental taxes that could be used elsewhere, $10+ million to move and build another fire hall, the downtown bus station the city will buy and, apparently, give to the developer, and all the other parcels that the city will turn over to developers. You add that up and it looks like the “10s of millions” being spent by the developer is going towards the mall, not the stadium.
Maybe Zach should take a look at Reno’s last attempt at a publicly-financed stadium. Is there anybody who can proudly point to the Bowling Stadium and say, yes, it was well worth the cost?
Don’t get all crazy on me Zach, for the most part I have supported just about every downtown redevelopment projects–particularly the ones that have been completed. Don’t misunderstand caution for negativity. Healthy skepticism is always a good thing. And just to be clear, I havent said I’m against this one. I am concerned about some of the details of the deal and project planning and completion in general.
Great discussion. Let’s keep it going!
Hey guys!
First of all, the Tuscon Sidewinders had remained in Tuscon for nearly 20 years before they moved. Tuscon’s extreme heat climate isn’t exactly friendly to a roofless baseball stadium, their first mistake was location, their second was not building a covered cooled stadium, and their third was not building a district around the stadium to support multi-function activities. Ken is right, do some research and look at the stadium, where its located, and what surrounds it. Baseball in 110 degree heat? no thanks.
As far as I can recall, the room tax can only be spent on certain things, it can’t just be funneled anywhere, and unless you stayed in a hotel here, you didn’t pay it. Also, the tax breaks they are getting are mostly property tax breaks, which would go right into redevelopment agency coffers anyway.
The City has stated they intend to use the stadium for other entertainment purposes…it’s a 10,000 seat venue downtown. Also, it’s the City Council who is pressing for an entire district to be built, and were pretty adament against approving JUST a stadium. They pretty much told the developer ‘dont come to us with jus ta stadium’ and you guys are bashing the developer for wanting to build a shopping mall with it? They are merely catering to what the city wants. And to those of you who keep referring to Reno’s last attempt at this, for one it wasn’t a Triple A team, for two they had a location, but no team, now we have a team AND a location AND stadium plans.
Also, the fire station WANTS to move, and said they can better serve the community in a location they can deploy from easier.
I think this project is great.
That one commenter above is right; people bitched and moaned when they put the Riverwalk in, now that’s a popular hang out spot downtown, they bitched and moaned when a movie theater was put in, now that’s one of the more popular movie theaters.
The six block entertainment district would be successful whether the baseball team attracts crowds or not. We’re talking about completing the bowling stadium (which draws hundreds of thousands of visitors for bowling tournaments who put major dollars into our economy, putting in a huge mall across from the stadium, coverting the existing RTC property to retail, tying the Bundox property to it and more. This kind of massive development is exactly what downtown needs. Just the retail projects alone will help enhance downtown. I don’t mind giving them some tax breaks to do it. Most great downtowns have an entertainment district, and I don’t count the casinos here as ‘entertainment.’ If Mike above is right, and the council is the one who is insistent just a stadium get built, then I agree with them. Also, it’s good to get some non-river oriented entertainment downtown. Anyone think of what happens if we have two more catastrophic winters and there IS no Truckee River for a summer or two for people to play in? It would collapse our downtown and put hundreds of businsses out of business; at least this will be an alternative entertainment district and the stadium something different to do besides play in the river.
all in all I am for anything that people can walk from near the downtown and the river. Tucson’s ballpark is out where nobody can walk to it.
I never knew the Bowling stadium was not completed.
Maybe they can complete that Mapes Plaza canopy while they’re at it? I was down there this week and it really needs shade to do anything during the day in the summer.
How republican of the developer!
http://www.socialistworker.org/2005-1/527/527_11_StadiumSwindle.shtml
http://www.commondreams.org/views01/0408-06.htm
great discussion, great questions. First off, NEVER assume the newspaper is giving you the whole story. Myrna is right, the devil is in the details. Second I would like to ask the Republic of the Internet, what happens if we DON’T do this deal? There are pros and cons to both sides but what about the do nothing option? Is this viable? If this project doesn’t work, the property will not be appraised higher than it is today. If it’s not appraised higher than it is today, there is no TIF (Tax Increment Financing) money to pay back the developers for the stadium. If there is no money to pay back the developers, well, right now it looks like they eat it.
I don’t like getting involved or issuing my two-cents when it’s not solicited, hwoever … what with the urban sprawl that Reno faces already, mark my words… a plan to have a downtown or centrally located sports venue will only serve to drive residents away from the City Center; not coax them in. The noise and traffic will prove to be a darkened corner on Reno’s march to municipal perfection and only encourage a greater urban sprawl and within a decade the existing suburbs to decay at a rate quicker than 0 - 60 in 2.5 seconds.
At this rate, Reno should just claim Washoe County’s borders as being the City limits; because the city fathers clearly have no understanding on limitations.